This error may occur because GIFTS cannot open the file it needs to create the merged correspondence. Please take the following steps to isolate the cause of the error:  

1.       Have you been able to merge successfully before? If no, refer to the Compatibility Fact Sheet for your version of GIFTS to make sure that your version of Word is certified as compatible with GIFTS. If yes, continue to the next step.  
2.       Have you recently upgraded to a new version of Word? If yes, refer to the Compatibility Fact Sheet for your version of GIFTS to make sure that your version of Word is certified as compatible with GIFTS. Otherwise, continue to the next step.  
3.       Does the GIFTS user have access rights to the network directory that contains your GIFTS correspondence templates? (By default, templates are located in the TEMPLATE directory within your GIFTS directory.) Contact your IT department to verify that the GIFTS user has read and write permissions for all of your template directories, and retry the merge. If the error still occurs, proceed to the next step.  

Note: If the problem does not occur on all workstations, it is an environmental issue rather than an issue with your GIFTS software. It is the client's responsibility to reconcile the differences between operational and problematic workstations. GIFTS includes a diagnostic utility that you can use to compare the system files on your workstations; however, MicroEdge Technical Support staff cannot provide assistance with environmental problems.